Carney says Canada won’t resume U.S. trade talks until Washington changes approach

Abi Sarabia M., Philippine Canadian Inquirer
August 26, 2026

Photo courtesy: AP News

Canadian Prime Minister Mark Carney says Canada will not return to the negotiating table with the United States unless Washington changes its approach to trade talks, following the collapse of negotiations and the imposition of new U.S. tariffs.

Carney said Monday that Canada walked away from the discussions after concluding that the terms being pushed by the United States posed a threat to major Canadian industries.

During the negotiations, Carney said it became clear that the Americans “want to destroy our major industries,” which he cited as one of the main reasons Canada rejected the proposed agreement.

The talks ended Friday shortly before a deadline to reach an agreement. U.S. President Donald Trump subsequently imposed 50% tariffs on roughly $28 billion worth of Canadian goods. Carney has said Canada will respond with matching tariffs beginning Sept. 8.

Carney said Washington must now make the first move if it wants negotiations to resume.

“When the Americans go to the negotiation table first, with the right attitude toward our industries and a true partnership, of course we’ll come to the negotiating table,” he told reporters in Quebec.

He added that Canada would not accept being treated as a “subsidiary of the United States.”

The dispute intensified Monday after Trump threatened to double U.S. auto tariffs from 25% to 50% beginning Jan. 1, 2027, while also extending the duties to auto parts. Canada is already facing U.S. tariffs on autos, steel, aluminum and forestry products.

The two countries had reached a preliminary understanding during negotiations, but the talks later broke down amid additional demands from both sides. According to the report, Canada objected to U.S. proposals that could restrict Ottawa’s ability to enter trade agreements with other countries and affect protections for its auto and cultural industries.

U.S. Vice President JD Vance, meanwhile, blamed Canada for the breakdown, accusing Ottawa of making “unreasonable, last-minute demands.”

With neither side currently signalling an immediate return to negotiations, the trade dispute is set to deepen as Canada prepares retaliatory tariffs and measures to assist businesses affected by the U.S. duties.